Description

NSE updates surveillance measures for companies with high promoter and non-promoter encumbrance, removing two companies from the framework while maintaining consolidated list of four securities.

Summary

NSE has updated its surveillance measure for companies with high promoter and non-promoter encumbrance under SEBI (SAST) Regulation 2011. Two companies are being removed from the framework while the consolidated list maintains four securities subject to 75% minimum margin requirements.

Key Points

  • No new securities added to the surveillance framework in this update
  • Two companies excluded from the measure effective September 1, 2025
  • Consolidated framework now includes 4 securities with 75% margin requirement
  • Measure applies to both equity and equity derivatives segments
  • Framework subject to periodic review

Regulatory Changes

  • Removal of Indo Tech Transformers Limited (INDOTECH) from surveillance measure
  • Removal of Steel Exchange India Limited (STEELXIND) from surveillance measure
  • No changes to margin requirements for remaining securities under the framework

Compliance Requirements

  • Trading members must ensure 75% minimum margin on all open positions for securities under the framework
  • Margin requirements apply to positions as of September 2, 2025 and new positions from September 3, 2025
  • Framework operates in conjunction with other prevailing exchange measures

Important Dates

  • September 1, 2025: Effective date for exclusion of INDOTECH and STEELXIND
  • September 2, 2025: Cut-off date for existing open positions subject to margin requirements
  • September 3, 2025: Effective date for margin requirements on new positions

Impact Assessment

Positive Impact: Reduced surveillance burden for Indo Tech Transformers Limited and Steel Exchange India Limited, potentially improving trading flexibility and reducing margin costs for these securities.

Ongoing Impact: Four securities (FMNL, HINDNATGLS, TFCILTD, THYROCARE) remain under enhanced surveillance with 75% margin requirements, continuing to face higher capital requirements for trading positions.

Impact Justification

Updates to surveillance framework affecting specific securities with margin implications